Portland Paints and Products Nigeria Plc stocks are up by 9.84% at press time as investors scamper for the shares of the company on news of a merger with Chemical Allied Products Plc.
According to data from the Nigerian Stock Exchange (NSE), Portland Paint shares cleared at N2.68 per share with 291,830 units worth N782,104.40 crossing hands, in 6 deals on the floor of the exchange today.
It is important to note that the current price of the shares of the company is still below the offered cash consideration of N2.90 for each ordinary share of N0.50 held in Portland Paints, in line with the proposition of the scheme merger.
However, the cash consideration offered to shareholders is 8.2% higher than the current share price of the company.
Nairametrics reported that the Judicial Division of the Federal High Court has approved the proposed scheme merger between Chemical Allied Products Plc and Portland Paints Plc, and other matters connected therewith.
Upon the Scheme becoming effective, shareholders of Portland Paints Plc, at the close of business on the Terminal Date, shall be offered a Cash Consideration of N2.90 for each ordinary share of N0.50 held in Portland Paints, or be allotted 1 ordinary share of N0.50 each in the share capital of CAP (credited as fully paid) in exchange for every 8 ordinary shares of N0.50 each held in Portland Paints.